Americans pump billions into complex fixed indexed annuities every year. Insurance agents push the annuities as a safe bet in volatile markets – they’ll tell you the policy offers the upside of market increases (the “indexed” part) with downside protection (the “fixed” part). Advertised returns exceed CD and money market rates. Anxious seniors are easy prey. The Marin County and California annuity attorneys at Evans Law Firm, Inc. recommend against these products.[1] At a minimum, take a close look before you buy. If you’re over 60 and already purchased a contract here in California and have suffered a loss due to cancellation, surrender or high fees, call the California annuity attorneys at Evans Law Firm, Inc. today at 415-441-8669 for a free review of your policy.

Here’s how fixed indexed annuities work in theory: in each year of a fixed indexed annuity, the contract return is the greater of an annual minimum rate, or the return of the chosen stock index, reduced by expenses and formulas buried in the contract. If the chosen index rises sufficiently for the year, a greater return is credited to the owner’s account but not vested or available for withdrawal. If the index declines, the lower minimum rate is credited (usually 0% – 2%) and again not vested immediately or available for withdrawal. Any “guarantees” kick in only if the owner holds the contract for the minimum required time (often as long as 10 years) and makes no withdrawals.

There’s the rub. Your money will be tied up for a long time and any early withdrawal will be subject to charges and forfeiture of any “extra” return in your account. Even if you hold out to the end and refrain from early withdrawals, commissions and other fees erode your return. Bottom line is, beware. Fixed index annuities are extremely complicated, and this is just a brief overview. Always consult a qualified professional who does not stand to gain from any purchase and your tax advisor before making any purchase.

Contact Us

If you or a loved one has suffered loss on a fixed indexed annuity or any other annuity in California, contact the Marin County and California annuity and financial elder abuse attorneys at Evans Law Firm at (415) 441-8669, or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. Our attorneys have experience with complex financial contracts and large insurance companies. We can help guide your case through a jury trial or toward an equitable settlement. We handle cases involving physical and financial elder abuse, qui tam and whistleblower law, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.

Leading providers and distributors of life insurance and annuities, including fixed indexed annuities, in California are listed below. We are not in any way suggesting that any of these carriers or distributors has done anything wrong. Rather, the list is provided solely as a reference for our readers.

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